Over the past three years, the interest of farmers in insurance has grown significantly in the country. The number of insurance contracts in the agricultural sector has doubled: if 93 contracts were concluded in 2020, then 184 insurance contracts in crop and livestock production were signed in 5 months of this year. This was reported by ElDala.kz with reference to the press service of the Agrarian Credit Corporation.
“Every year, interest in agricultural insurance is growing. If in 2020-2021 254 contracts were concluded, more than 265.7 thousand hectares, 2.6 million heads of animals and birds (including cattle and small cattle, horses and birds) were insured, then for 5 months of this year 184 contracts, 308,000 hectares and more than 60,000 heads of farm animals and birds have been insured,” the press service informed.
In the first two years of operation of the voluntary insurance system, agricultural producers allocated 350 million tenge for the conclusion of insurance contracts, another 350 million tenge was paid by the state in the form of subsidies. Thus, the state assumed 50% of the costs when concluding the insurance contract. As a result, the amount of payments to farmers upon the occurrence of an insured event amounted to 1 billion 333 million tenge.
The ACC noted that for 5 months of this year the volume of paid subsidies exceeded 500 million tenge.
“The insurance system in force since 2004 was mandatory and included only crop production. Starting from 2020, a voluntary system has been operating in Kazakhstan, which provides opportunities for insurance in any direction of the agricultural sector. Today's insurance products include insurance of crop production against lack and excess of moisture, as well as insurance of cattle, horses, sheep, birds," the ACC explained.
As noted in the corporation, the state provides support in the form of subsidizing insurance premiums, which reduces the costs of peasants. 50% of the price of the insurance contract is paid by the farmer, 50% is subsidized by the state. 3.5 billion tenge was allocated for these purposes in 2020-2021.
It is noted that there is no need to go anywhere to conclude an insurance contract: with the help of an electronic digital signature on the www.qoldau.kz platform, the conclusion of an insurance contract is available online.
According to the ACC, international reinsurance companies with an “A” rating in the world market are attracted to the agricultural insurance system in Kazakhstan. They reinsure the risks that domestic companies take on. This provides guaranteed payments in the event of insured events.
Recall that since December 2021, the agricultural insurance operator is a subsidiary of the Baiterek holding - Agrarian Credit Corporation.